a new high. >> joe terranova. >> technology, apple on the table. >> we bought qualcomm for the same reason, positioned yesterday. >> mr. weiss. >> i'm with josh, qualcomm for a long time, goes a lot higher. >> stocks not too far from the highs of the day. tune into fast money at 5:00 p.m. eastern time and our special coverage, mission critical, rise above continues from the nation's capital right now. >> time is running out. >> right now the american people have to be scratching their heads. when is the president going to get serious. >> washington remains. >> that is a bad strategy for america. it is a bad strategy for your businesses and it is not a game i will play. >> but the fiscal cliff still looms. cnbc has called on lawmakers to rise above gridlock and reach a deal. now we're beating down their doors. live from our nation's capital, this is a cnbc special report.

mission critical, rise above d.c. welcome back from our nation's capital. i'm mario bartiromo with brian sullivan. we continue our fiscal cliff coverage, "mission critical, rise above d.c." we've heard a lot after a morning of interviews and action on capitol hill. here is what we know now. just a short while ago house speaker boehner said he's still waiting on a solid plan from president obama. >> i'm hopeful we can reach an agreement. this is a serious issue. there's a lot at stake. the person people sent us here to work together towards the best possible solution, and that means cutting spending. the president doesn't agree with our approach, he's got an obligation to put forward a plan that can pass both chambers of the congress. >> meanwhile despite all of the back and forth, the market is seemingly optimistic today. at least some form of a deal

will be released. we've been up 100 points on the dow industrials for the past hour. senator mark warner of virginia perhaps putting it best saying compared to the size of our economy the current proposals are relatively small and government should step up and get a deal done. >> we're joined by representative lee terry, republican from nebraska represents the district home to a guy we all know, warren buffett. >> pretty famous guy. >> we spoke to some folks already today. we're not hearing many details. what details have you received specifically from the democrats on the spending cuts they are willing to make. >> none. we haven't heard any details from the democrats, even bust talking around the capital. >> nothing. what they are doing snch that's a good question. frankly speaker boehner is getting heat from our own conference because he's putting offers out. we're not getting real

counteroffers. it's like we're bidding against ourselves. >> when the president came out with his proposal there's $600 billion in cuts in the proposal. those $600 billion in cuts, where do they come from and is this something you've heard before. >> it wasn't specified and heard before, less than what we heard in past negotiations from the debt limit talks of '11. he was putting more on the table. so it looked to us like we were going backwards on the discussion. no details though. >> do you feel some of the cuts proposed are reductions in future spending growth and not actual cuts? >> i will say there was one. there was savings. 400 of that was going to be savings within medicare. where you found that, he's already taken 700 billion out in savings for obama care, so we don't know where that was actually going to be. >> how does this play out. is it possible you guys go home for the holidays without a deal done? you've been told what about christmas and the day after? >> we've already been told to prepare to come back after christmas because this may not

be finished. >> when were you told that? >> eric cantor at our conference. the reality, and i hate this, it really frustrates me, but sometimes deals don't get done until there's one minute left on the clock rainfall according to the urban institute, cato institute, other research institutions, typical household will extract $3 of medicaid for every $1 they pay in. a single working household, six to one. $6 for every $1 they pay in. >> no wonder we're bankrupt. >> are you willing to tell people no? are you willing to tell grandma, dad, look, you can't have this. >> there is a lot of inefficiencies in medicare. just the way the system is done breeds that kind of waste in the system. if we're going to do medicare and it needs to be done. that's what we're looking at.

if you look at today and into the future, if you don't tackle issues of future debt, which are big entitlement programs, then all we're doing is punting bankruptcy, in essence. doing things like increasing the age, we're not going to do that on seniors. for me i'm almost 51. if i have to wait until i'm 66 or 67 for medicare or later for social security, i'm in. i've got three young children in grade school, middle school and high school. they will have to wait a little bit longer. those are the type of things we could do now and really save billions, hundreds of billions of dollars in the future. >> you have said in the past that you think that going over the fiscal cliff is in president obama's best interest. >> i really believe that. frankly, the lack of credible solutions and backtracking like the amount of spending. doubling the taxes he wants raised and the fact he wants

stimulus package that he knew nobody was going to support here. doesn't look like he's trying to engage in ernest discussions, which leads me to believe he wants us to go over the cliff and be able to blame the republicans and maybe it's more about politics. >> congress people themselves said the election was a referendum on the president's ideas. part of that was the very clear message of tax hikes on the top 2%. >> that's great, but he didn't win my district and i did. so my mandate is something else. >> good appoint. >> if we only represent our own slices we'll never get anything done. >> you hit the nail on the head. what we're being asked is the republican conference, jump off the cliff alone. if this is going to be a deal, we've got to grab hands together and jump off together. they have got to put the long-term obligations on the table if we're going to get our fiscal health back in order. if that's part of raising taxes and cutting, as long as it's

sensible, you'll get the majority of republicans. >> so you will accept higher taxes, then, if there are equal spending cuts on the table. >> absolutely. look, at some point you've got to give us something we say are we willing to lose our re-elections over this. just jumping off the cliff and raising taxes, we're not going to buy into that. the president has to realize this has got to be a dual effort and we both have to go over the political cliff. >> are you guys talking about all the layoffs that will occur if, in fact, we go over the cliff in your congress meeting? >> yes, as a matter of fact we do. in fact, in my district i have a major base and defense contractors are there. they are already telling me they are laying off. >> how many cuts are you expecting? >> we don't know in total but we know there will be because they are telling us. >> i think you have to be willing to commit political harry kerry because you have to say no. >> our day in washington isn't done, just beginning.

top of the next hour maria and i will be joined by senator johnny isakson. back to you guys. >> maria, brian, thank you very much. will a fiscal cliff deal be done in time? why don't you register your opinion. finance.cnbc. cast your vote. results will come up later on "power lunch." sue. >> we have a triple digit rally on the floor of the new york stock exchange with the dow jones industrial just off the highs of the trading session. we're up 109 points on the dow despite the gridlock in washington. nasdaq is up 41 points and s&p 500 is up 13 points. all three of those averages moving back above their 50-day moving average. first time we've seen that since october. trader from cnbc, and ceo of destination wealth management. ken y, i'm going to start with you. you were champing at the bit listening to the interview that

was done in washington. why is this market up triple digits? is it up because they think there is a deal or isn't a deal? >> very interesting. i'm beginning to think the market is rallying because there is no deal, we're going over this cliff. let's not forget, it was a bipartisan committee that couldn't come to an agreement which created the situation we're in. that senator said one side jumping off the cliff. in fact, grab hands. we're all jumping off the cliff. both sides are jumping. in that case the market could, in fact, be rallying. if we go over, it's going to force spendsing cuts, compliance. yes, taxing will go up. maybe what it really wants is spending cuts. >> what do you think, michael? at this point a lot of people also think if we get those cuss and taxes go up, then the republicans can cowme in and sa it's going up. is that why the market is moving

up because there's a resolution? >> i think so. we need to stop focusing on the grand bargain but the initial part and move the goalpost six or seven months. that's why the market is trading up. >> michael, couldn't it be the market decided, hey, what difference does it really make if we get a deal before january 1 or, quote, go over the cliff for a few days a week, punts into the next congress, and then there is a, quote, down payment on future bargain. everybody says, wow, once you solve the immediate problem, they will never get back to -- >> i think that's what's going to happen. people are going to basically say, as long as there's some movement and the can is moving a little bit. >> they are kind of saying it doesn't matter, aren't they? are investigators saying it doesn't matter. >> as long as we have the initial down payment. >> kenny thinks we're beginning to look a little like europe. they are punting. >> the market, as we saw in europe, they rallied the market ahead of what they thought was going to be a deal, kicked the

can down the road. in fact, if that's the case. michael may be right there's going to be a framework but not a deal, yes, we rallied the market, they will become disappointed and take it back. >> that's not the case. if you look at what's happening, economy better, earnings solid, interest rates are low. the fed probably this week will announce they are going to continue their policies to flood the system with money. >> but there's your answer. the fed is going to keep pumping the system with money. fundamentally are we really where we should be. >> we're not talking about fundamentals. we're talking about what the market is going to do. there's reality and what the market is going to be. if there's free money, we might be broke but there's free money. >> all right. that sounds like a good recipe. michael, we'll have you back later in the hour. >> kenny, do you buy into the rally. >> you buy into the rally because like mike said with all the money they are forcing the risk trade. if you look at financials and a

weakening global environment, it gets a little bit nervous in terms of how far could it go. >> we'll talk to you later. >> over to you. >> rise above d.c. congressman yoder will join us a republican who refused to sign the grover norquist pledge to not raise taxes, never, ever getting back together. taylor swift. we'll get his solution. delta taking a big stakes in virgin. fill lebeau, what does it mean for both? >> for both? delta, more business over to the uk, lucrative business. we'll talk to the ceo of delta in a few minutes.

rick santelli tracking the action at the c mulch e. what was it like today? >> it wasn't bad. we're going to give this auction a hook, an absolutely dead smack in the middle of the curve c. there's some strange inputs in this auction. $32 million yields a .327, which is exactly in the middle bitten off on wi. so pricing is fine. if you look at internals, a bid to cover -- to find a lower bid to cover they have to go back to

february. if you look at direct bidding at 24.8, that is a record. that's almost twice 13%. if you look at indirect bids it's almost exactly the opposite. 22.9 well below 32% auction average and lowest since may of '07. we walk away thinking not so great. now that yield i mentioned, .327 is a record all-time low yield for the threes. after i sypher all that we come up with an average and look forward to $21 billion, ten years, early auction because of the fed decision. back to you, tyler. >> rick, thank you very much. delta air lines buying 49% of britain's virgin atlantic. the two lines agreeing on a transatlantic joint venture. delta. let's take a look at the stock now up $0.70, $10.84. speaking with ceo. phil. >> more access to the lucrative market, that's what this is about. when you look at what delta has

done, here is how the deal breaks down. getting a pretty good deal by most estimates. when i talk to insists, 360 million for a 49% stake for delta, not a bad deal. remember, they are buying this from singapore airlines which had that 49% stake in virgin atlantic. again, the increase here is all about delta increasing its exposure to london heathrow. the approval rate, we expect it's probably going to happen in mid 2013 according to richard anderson the ceo of delta. frequent flyer reciprocity is a huge deal. in other words, if you've got miles on both airlines, you'll be able to use them once this deal goes through. new york city to heathrow flight, will there be changes, perhaps after the deal is approved. richard anderson told us ultimately about increasing the number of flights into heathrow. >> it's really about the access to the uk/u.s. marketplace. it's by far by 200% the largest

market between europe and the u.s. and delta has had an 8% market share, fifth place. with this transaction we get to second place with a quarter of the market. >> that's a huge increase for delta. what about for virgin atlantic and richard branson, the ceo. well, the brand remains. remember, there's been some speculation that delta would take over virgin atlantic. not going to happen. ceo richard branson will be staying in charge. he was part of the announcement today here in new york city by satellite coming from down in the dominican. as we look at shares of delta, take a look at this. stock up, a nice gain today, almost 7%. tyler, in the end, what we're going to see is more of these types of deals in the industry, as you see the domestic u.s. carriers tried to increase their exposure to some of these lucrative markets. >> you answered my question. virgin gets to remain a virgin after it jumps into bed with delta. >> i'm in the touching that. come on, that's a no win situation.

yes, it remains, the brand remains. >> the brand remains. what's it going to do for airfares? anything? is there anything that will affect the flying public really? >> i think it's too soon to know. conjecture to say we're going to see airfares go up or down because of this. >> sue. >> gentlemen, analyzing the analyst, goldman sachs making calls on retail sector coach and michael kors. back in two. you won't take my life. you won't take our future. aids affects us all. even babies. chevron is working to stop mother-to-child transmission. our employees and their families are part of the fight. and we're winning. at chevron nigeria, we haven't had a reported case in 12 years. aids is strong. aids is strong. but we are stronger. and aids... ♪

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on your holiday shopping from l.l. bean. goldman sachs, michael, initiated coverage on the specialty retail space. highlight three of the stocks beginning with michael kors. top idea michael kors holding with $75 price target, stop up 89%. to do you like this call? >> yes. let's talk about michael kors product. it's really a lower cost luxury item. louis vuitton, $1,000, michael kors, maybe $400. i know someone who only buys $700 armes bag. only a few can afford that. michael kors isafter forwardable. >> affordable luxury compared to

others. the fact it's up 90% doesn't scare you off. >> evaluation is reasonable and earnings momentum is fine. >> let's move to another one, gap sort of the other side of the deal here. in addition kuwaited with a buy, $41 price target, shares up 70%. a buy on gap. >> hot for me. i'll tell you why. i'm still trying to figure out exactly what gap is. as you know, when left i went to j. crew. they lost their way. they may be starting to get it back. you see that in same-store sales. another thing when you read analysts opinions, a goldman sachs said about this stock one of the tail winds is the cotton crisis will likely go down which will actually increase margins. now, that's fine, as long as that happens, if we have any kind of sustained global growth maybe cotton doesn't go down. i prefer to buy on -- >> as long as that happens and as long as they have stuff people want to buy.

>> they know when they go to gap, what am i buying. what is the style? am i buying for 25, 35 years old, are they buying for you? i don't know. >> i got the pleated one, the khakis with the pleats. let's go to a sell in this group. it is on coach, which is another one of those affordable luxury brands, shares of coach down about 10% for the one-year period. what do you think of this? this is a sell they say. >> i probably would not sell the stock. if you look at analysts notes it's not a problem stock, just nearly fully valued. coach is another one of those michael kors sort of brands, sells more affordable goods. i will tell you when you go to outlet malls. an outlet mall that opens, most popular store is coach outlet. another thing coach is doing, very interesting. they are starting to separate stores, starting to have a coach men's and ladies store side by side. they are targeting consumerers, won't have to sort through writes the man, the woman's

product. a smart idea. it's a rich stock but i wouldn't sell at this point. >> thank you very much. >> sue, down to you. >> in the next hour, we'll talk with kansas republican congressman jordaner, refused to sign grover norquist's pledge not to raise taxes. we'll ask him what his solutions are to the fiscal cliff. a member of the rolling stones will join us here on "power lunch." we have a triple digit advance in the dow we're up 106 points. [ male announcer ] this is joe woods' first day of work.

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a nice rally for the bulls, up 106 points on the dow jones industrial average. let's get trading action. bob pisani joins me. that's despite gridlock in washington. >> maybe because of it. take a look at dow jones industrial average. we were up, speaker boehner gave us an update and basically said where is the president on the spending cut issue. we lost ground on that particular news. a couple of sectors doing well. tech outperforming, ambassadors trying to find a trading range between 5 and $6hup, a little more stable. texas instruments raised outlook, chip marks, alter, a,

jds among gains. what sequestration worries, they continue to defy gravity. second group strong, airline stocks. good news, delta taking a 49% steak in virgin air, maybe more consolidation. booking trends good recently. a minimal impact from business travel on sandy overall, jet fuel prices continue to drop. let's talk about exchange traded funds. you know them. i'm a big backer. matt hogan here moderating a conference master of all things etfs. we're continuing to see money going in. what's going on? why is etf so high? >> a couple of reasons. all the things we talk about, lower cost more cost efficient that's driving people into etfs. continue flows into the etfs out of mutual funds. >> you won't believe it, people

keep moving out of stock mutual funds and into etfs overall. the money keeps flowing into that. why is that happening? >> i think there are two reasons. one, over time people have learned that active management doesn't work. they learn it didn't work in large caps, small caps, doesn't work in emerging markets. in the equity space you're better off buying index. >> taxable bonds, money goes into there. mutual funds and exchange traded funds. when is the bubble going to burst? >> you tell me. investors follow performance. as long as those things continue to do well, investors will jump in. the other thing we don't have in equity, we have two superstars, bill gross, jeff gunlock, knocking the cover off the ball. people like to buy the personality. no peter lynch in stocks anymore. >> what about the fiscal cliff? we just talked about it with john boehner. does that help or hurt? >> home run for exchange trade for two reasons. whatever happens on the fiscal cliff, whatever they get their act together to do, two things will happen.

tax rates will go up on capital gains and dividend. etfs or more tax efficient, more people will follow into that place. i also think some people trapped in mutual funds because they have low tax basis will do tax gains harvesting, realize their gains, pay 15% and move that money finally into cheaper, more tax efficient and better profits etf has to offer. >> trader talk column, trader talk cnbc.com in a few moments. that's what's hot, etfs. back to you. >> we look forward to that very much. thanks, guys. gold market selling off a little bit. at the close, sharon epperson tracking the action at the nymex. moving into stocks and out of the metals. >> they are. we're seeing a little bit of weakness in the gold futures price. gold etfs held up steadily over the last several weebs as well as record levels, in fact. in term of the flat price we are looking at 1710, down $4.

investors say they are waiting, waiting to see what comes out of the fed meeting tomorrow. because of that, that is helping to mitigate losses we've seen, perhaps, in the gold market. we are looking at lower prices across the board in the metals complex, lower prices for silver, lower prices for copper as well, even for palladium that had a nice run in the previous session. platinum is a gainer, two-month high. it may have had room to run, more so from palladium and the positive data from china. back to you. >> sharon, thank you very much. breaking news to brian shactman, nfl bounty case. brian. >> nine months after this story broke, paul announced he's vacating all penalties on four players. they are exonerated. the key here is the players were not in favor of tagliabue doing

this. spent three years, 50,000 pages of documents indicting players. they exonerated them. two of them might return to play this season. >> thank you very much, brian shactman. >> to nasdaq, bertha coombs following big movers there. we have the advance there as well. >> we do. nasdaq 100 outperforming thanks to apple's recovery. off of the highs of the day. nonetheless it is contributing about a third of the outside impact to the nasdaq 100. facebook will be added tomorrow. watch that going into the close. it will be trading in the nasdaq, emphasis trades over at nyc. yahoo! has a mobile app for mail. today at a four-year high. that stock continues momentum. couple of deal-based stocks, trip adviser with folks at liberty interactive taking a voting and controlling stake.

clear wire, david favor saying they are acquiring the rest. back to you at nyc. >> grover norquist not backing down on his opposition to new revenues as the fiscal cliff clock ticks down. this is what he said earlier on "squawk box." listen up. >> raising tacks is always bad for the economy. that doesn't change. raising taxes is what politicians do instead of reforming government. the reason we haven't reformed entitlements, the reason we haven't reined in spending, politicians go we'll raise taxes and backfill. >> representative kevin yoder, a republican from kansas, sits on the house appropriations committee. a plum assignment especially for a freshman. he's one of a handful of republicans who did not sign the norquist taxpayer protection pledge. congressman yoder, welcome. why didn't you sign the pledge

and are you happy you didn't? >> i didn't sign pledges. i don't believe our job is to make a pledge to a third party group. my pledge is to the third party district. as the debate wages on on how to get off the fiscal cliff. i'm not one to make a pledge to a third party group. how do we get through the situation, find the best result for american people. there's a lot of opinions out there. we have to listen to all voices to come to a conclusion. that requires we don't shut any idea out before we come to a conclusion. >> there has been, i suppose a tremendous amount of attention on raising the top marginal rates for top 2% of taxpayers. one of the articles i read recently indicated raising those rates would be 4% of our total debt issue. the remainder has to be addressed in other ways specifically by going after spending. what spending cuts are you specifically willing to sign

onto today? and most particularly with respect to medicare? >> i think we need spending reductions at every level of the federal government. as has been said many times, it's not that washington spends too little, it's that it taxes too much. so we're trying to find ways to reduce spending in all areas, domestic spending, defense, waste in the pentagon and, yes, our entitlement programs. we have to reform the federal government. what a great opportunity with new congress coming in, with the country focused on these issues for us to come together and actually take a top to bottom review, reprioritize spending at every level reduce the federal expenditures. we have to cut spending in this town. we are not going to tax our way to prosperity. so myself and other members, i hopefully think members in both parties are ready for serious budget reform and serious spending reductions. frankly we've all been disappointed we haven't seen leadership out of the white house in the same direction. that's the biggest sticking point to why we can't reach a solution regarding the fiscal

cliff at this point. >> how specifically would you address spending in medicare? it seems to me americans are very accustomed to seeing health care benefits cut. just ask anyone that works for a major corporation over the last few years and you will see the portion of your medical care you pay for that risen, the portion your company pays for has declined. why are we so afraid of that? what specifically would you urge us to consider with respect to medicare savings? >> if we don't make revisions to medicare going forward in the future, medicare itself will go bankrupt and swallow the national budget driving us into great deficit, sending us towards greece and european decline. we all know and both parties recognize a resolution to medicare liabilities has to be part of a solution. >> give me one idea you would be ready to sign onto today that would significantly reduce medicare spending. >> we've already passed such a solution in the house. last year we passed legislation

that would reform medicare. the budget paul ryan, chairman of the budget committee put forward, passed it to the house, senate hasn't passed a bunl in 1,000 days. we weren't able to get them engaged on that topic. that proposal able to bend the cost curve in medicare, put us toward the budget and preserve medicare exactly the way it is for current retirees. that's the balance you have to strike. that legislation struck a balance of 55 and above keeping medicare exactly the way it is and making changes for those in their 20s and 30s and 40s. most people i talk to in those groups understand we've got to reform medicare to save it and balance the federal budget. >> congressman, good luck to you. hopefully we'll see you on the other side of a deal. sue. >> gentlemen, in today's yahoo! finance poll we asked do you believe a deal will be done in time. 20% say, yes, a deal will be done in time. 20% say, no, we're going over the cliff. 60% say there will ab temporary

measure that will kick the can down the road. the michigan house has approved a controversial right to work bill even as workers protested outside. that follows approval by the state senate last week. michigan governor rick snyder said he will sign that bill. more than 12,000 workers crowded into michigan state capital as legislature began debating right to work law. that prohibits unions from compelling members to be members and pay dues. security was tight. police in rite gear and carrying spray canisters on their belts. what happens to the u.s. economy if we do go over the cliff? the government cashes out of aig. what's next for the company and for the ceo? but when i was in an accident... i was worried the health care system spoke a language all its own with unitedhealthcare, i got help that fit my life.

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you might be in the middle of "power lunch," coming up on "street signs," double barrel, whatever you want to call it, live in d.c., yours truly here at the mother ship. we are rising above. lots of cool guests on tap for you. for example, the fiscal cliff could reverse u.s. home price improvements. we bring on chief economist to ask, is the dream of home ownership alive and well and whether it's a good investment. a first on cnbc interview, a record settlement to make a money laundering probe go away. lots of things coming up top of the hour, folks. back to you on "power lunch." >> thank you. see you on cnbc 2:00 p.m. eastern time. >> number one threat to the economy, what are the top economists saying if we don't reach a deal. steve liesman with results of our cnbc fed survey. what are they saying? >> sue, i'm afraid it's not good

news. our survey, they think the probability of recession is going up. most of that is because of fiscal cliff. can you see here the current probability, 28.5% we'll have a recession in the next 12 months. we had a low in march of almost 20%. that compares with a high. remember the debt ceiling debate of 36%. that chance going up. i want to show you in detail what dan greenhouse wrote in with his response in the survey. if the cliff is triggered and the cuts/tax increases remain in place for several weeks or worse, several months, it's hard to construct a scenario where the u.s. economy is not in recession. this is what's interesting here. recovering from that recession is not as simple as fixing the cliff's issues. the u.s. economy is not a light switch. you don't turn it back on. so the question, will we go over the cliff? on the first, looks like no, we won't go over. we'll avoid it. 41% say, yes, we'll go over, 46% say we won't. look at this, 13% don't know.

we talk about uncertainty in the economy. i would add 41% who say we're going over with the 13% who say we don't know. that's 54% right there. next chart i want to show you, upside if we don't go over the cliff. the u.s. economy could ongrow 3% to 3.5% in short order if the politicians could get the budget right. according to ward mccarthy at jeffries. if we do go over, gdp impact. look at two things. blue bars here is 2013, 44% think negative impact-2 to-4. red bars, that's 2014. you can still see it's negative. i just want to show you quickly, average of 1.6 percentage point gdb in 2013, fiscal cliff is the gift that keeps on taking, another a half a point hit in

2013 according to our experts. sue. >> yikes. that is kind of dire. steve, thank you very much. appreciate it. of course go to cnbc.com for more information. >> we will have coverage of the fed decision at 12:15 p.m. eastern time. brian sullivan will be hosting that. of course followed by mr. bernanke's news conference. coverage of that begins "street signs" 2:00 p.m. eastern time. mr. liesman will probably be at that news conference. come on over here, mr. liesman. we have a very special guest. there is a lot of people in washington that can't get no satisfaction today chuck lavelle, small business optimism plunging, election, storm sandy adding to fiscal cliff worries. joining us special guest chuck labelle, the keyboardist for rolling stones if you don't know. co-founder of mother nature network which just merged with discovery and author of a book, growing a better america. since woodall rodgers a business

network, i have to ask you, you're a businessman. does this fiscal cliff stuff worry you and the prospect of higher taxes worry you? what do you think? >> i think it worries all of us, doesn't it? i'm one that has faith. i believe something is going to happen. i believe we'll have a deal before it gets over the cliff personally. i'm an optimist. >> you're in farming. you have a guesthouse on your land down in georgia. what do you your customers tell you about the state of the economy? >> we get varying points of view from the discussions we have at the plantation. again, i think the majority of folks that come and, you know, have discussions of all types, especially when it gets to the economy, they are optimists and they feel like the country is getting better, albeit more slowly than we would all like. but i think the overall feeling is that it's going to be okay. just take a deep breath, move

forward. >> let's turn to music, shall we, steve, come on. >> if you don't know one of the things he's famous for, rolling stones, 1982 but the most classic piano solo in the history of rock and roll, the one on jessica. everybody who knows that song -- >> do we have it. >> chuck, you've been touring for years. tell me quickly how the music business has changedo you make t make a buck in the music now to 30 years ago. >> lps, eight tracks, digital domain. especially the change to digit take has a tremendous effect on revenue streams. as we know, piracy is a big issue. file sharing, if you will, has really cut into the revenue streams for recorded music. therefore, most artists have gone to depend more and more on

live shows for revenue streams and alternative ways to make revenue streams, whether you're talking about getting your music on television or movies or in commercials and such. the merchandising opportunities. so the world is changing. >> i ran the grooves ragged on eat a peach, almond brothers, live at the philmore, classic albums they did. you'll play tomorrow night the storm for sandy benefit 2012. how did that come about and how did your guys, the stones, decide to do it? i assume it was jagger who said we're in? >> you know, the band already had the shows on tap to play here. we just did barkley center. we had two shows at prudential center coming up in newark. we're in town. so knowing -- >> how lucky is that? >> yeah, how lucky is that. they did approach the band and said, would you be willing to participate. here is the thing. not only this band but all the

bands willing to participate in the benefit, new york has been very good to us. we want to give back. i think it's a great thing. >> you're better looking than jagger. >> a lot better looking than jagger. >> hell of a piano player. website you put together, one of the biggest environmental ipads. >> can you do that? >> t discess. >> let's see. ♪ >> chuck leavell, thank you. >> since 1982. good to be with you. >> sue. >> i can't believe i have to follow that. i really can't. terrific. good luck tomorrow night, guys. it's a fantastic charity event for the victims of sandy. groupon ceo speaking out as he tries to revive his struggling company. we have the headlines on that major story. a super deal for beyonce as

well. a $50 million deal. with pepsi, is it a match made in heaven? for $50 million bucks i bet it is.

try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it.

i'm julia borsten in los angeles. groupon up 4% as ceo andrew mason speaks at a conference. he wouldn't respond to any of the juicy questions like whether the company needs new leadership or friday's report google is interested in groupon which sent it skyrocketing. given up gains, about 15% since friday. mason stressing groupon strength in mobile, a third his transactions on mobile devices saying mobile customers spend more and are more loyal. sue, over to you. >> thank you. time for the "power lunch" rundown. welcome, gentlemen. first up treasury selling remaining aig shares and nets $22.7 billion in the process. a nice tidy sumbu it took a while and it was a lot of hard

work to get that. >> yes, the question for historians to debate is whether or not the success of this aig bail ott will encourage future generations of lawmakers to say, hey, you know what, last trim we made $22 billion. let's do it again. it seems to work. that's the question from now until the next major financial collapse. i hope that's a long time from now but it's something to think about. >> i want to put out $22 billion sounds like a lot of money but only about a 3% return per year. the treasury really isn't as great an investment as we thought but thank god we didn't lose money on this. >> at the time it was thought the government would lose money. >> i thought it would lose its short. >> let's go to aig speaking of losing, a $2 billion fine in a money laundering case led by legal officer leafy,vey.

>> this reveals something about the way the revolving door works. it gives an incentive for regulators to be tougher on regulatedentities. sec regulators want to be tough on investment banks because they can get jobs defending them when they get out of government. that's exactly what happened here. he went after them and got a high paying job for s.e.c. >> not that he's cynical. >> couple of things to say about this. one, a lot of critics will look at this and say, it's like if al capone hired elliot ness and helped him clean up. treasury doesn't see it that way. they followed all the cooling off rules. they are happy to have his expertise on board. >> next beyonce, pepsi and $50 million bucks. what do you think, john carney. >> i'm sorry i pushed for the $60 million for me and it went to beyonce. >> i would have done it for five. i would do it for five, save pepsi a lot of money, we would

sell a lot of soda. a lot of people like beyonce. if my face was on there we could see some cans. >> that would be really cool. >> i'm not going to touch that one. we'll leave it there, gentlemen, appreciate it very much. when we come back, a quick update on the markets. we still have a triple digit advance in the dow jones industrial average. back in 2:00. [ male announcer ] it's that time of year again. time for citi price rewind. because your daughter really wants that pink castle thing.

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it's a strong market day, dow jones industrial average up 109 points now. s&p up 12 and nasdaq up 42 points. ty. >> all right, sue. let's bring in keith richards of the rolling stones now. michael, who is the keith richards of destination wealth management as well as cnbc contributor. you want to talk a little bit about apple. >> yeah, sure. after that intro, of course i do. apple is a stock that's been hit as of late. it's down significantly in bear market territory. i think people should not give up hope on apple. i think this quarter and next quarter are going to be blowout quarters. iphone just approved, ipad just approved in china. i was just in shanghai, hong kong, lines are